Stock Sale Timing Favors Lululemon Chairman

Four days before Lululemon’s stock plummeted, company chairman Dennis Wilson sold $50 million worth of shares. Suzanne Kapner reports.

This transcript has been automatically generated and may not be 100% accurate.

... four days before Lululemon stock plummeted the most recent ... downturn the ... company chairman Dennis Wilson sold fifteen million worth of shares ... why was it all mean what happened to Suzanne Kapner joins MoneyBeat to talk about this one ... by ... this that ensures that great ... in the ... executive is time you know soo old ... we were going on while Lululemon Mr Wilson sold these shares under a plan right it's called attend the five one planet something a lot of insiders who use ... and the idea is you can set it back and then you're able to sell stock even if you are in possession of ... nonpublic material information the idea is ... that when you said the plane and you can't be in possession of such information but then ... as events unfold as they inevitably do ... you're able to move in and out of the stock without restrictions ... the tricky thing with this one is right he sold the shares ahead of the announcement that the CEO ... what a crazy you know what pattern and the law Street Journal had a page one story not too long though that highlighted ... how executives he sees plans their their timing seems to be very very good and ... in the case of ... Mr Wilson you know seen him his time here was excellent ... and going back looking at some of his trains ... in the past there seems to be a pattern or a good time to ... pay ... he lives by the respondent to this publicly actually he did send us a statement last night where he and ... heal he said that I'd you know he's done nothing wrong and he said his plan with Merrill Lynch in December ... and you know in the way these plans work is they and ... they had triggers so you can say I'm to sell certain rich shares and ... the same day in every quarter or I may sell shares when the stock hits a certain price now we'll know what that Riverside ... a insiders are not required to disclose this information and Mr. Wilson did not disclose ... so ... when we don't know but there is some kind of a formula that he noted that it's the selling ... and I did the real tricky thing is ... it true on the day he sold it was the day that ... the CEO gave her no don't the Republican machine given a notice saying she planned on signs told the board that day she was going to resign yesterday so the stock and that that's ... which of course seems tricky but he's got this plan set up so ... sure the SCC unknown else is going to look into this right ... we know now I know ... the question in the right people at a high successfully Apple regulators relent the raises some eyebrows but we know we don't have all the facts so it's hard to make a judgment call for it to write now were just reporting we know that ... he made it to my iTunes and kept me to keep on the on shore after mine